1 PURPOSE

2 METHODOLOGY

3 INTRODUCTION

History

Our physical presence in Malaysia comes through a network of over 50 hypermarkets, which are
serviced by two state of the art distribution centres in Selangor.

Since the launch of the business in 2002, we've opened many stores across Peninsular Malaysia
and we recently opened two new stores. In total, our stores in Malaysia have a combined floor
space of over 4 million square feet.

With the influence of the internet increasing, two thirds of Malaysians have access to the
internet. Following the launch of grocery home shopping in 2013, we grew our grocery home
shopping business in its first year of operation in the country.

We offer a wide range of 4,000 own brand products 90% of which are sourced in Malaysia.
They include Tesco Value, Choice and Finest, as well as specialist ranges such as a Lighter
Choices.

Mission and vision

Mission: Creating value for customers, to earn their lifetime loyalty

Vision: Our vision is for Tesco to be most highly valued by the customers we serve, the
communities in which we operate, our loyal and committed staff and our shareholders; to be a
growth company; a modern and innovative company and winning locally, applying our skills
globally. Companies, like Tesco, that enjoy long-term success, are focused businesses. They
have a core vision that remains constant while the business strategies and practices continuously
adapt to a changing world. In an increasingly competitive global environment, without a clear
vision a business will lack direction and may not survive. Tesco has a seven part business
strategy to help it achieve its vision.
A vision is an aspirational view of where the business wants to be. It provides a benchmark for
what the business hopes to achieve. Tesco is a company built around customers and colleagues.
Its vision guides the direction of the organisation and the strategic decisions it makes. Tescos
vision is:

To be the most highly valued business by: the customers we serve, the communities in which we
operate, our loyal and committed colleagues and of course, our shareholders.

Tescos vision has five elements

Tescos vision has five elements which describes the sort of company it aspires to be. These are
to be:

wanted and needed around the world

a growing business, full of opportunities

modern, innovative and full of ideas

winners locally whilst applying our skills globally

inspiring, earning trust and loyalty from customers, our colleagues and communities.

The vision, mission statement and goals are interrelated and state what an organisation is seeking
to achieve whereas the strategies and tactics show how it will achieve them. Tescos core
purpose (mission) is simple:

We make what matters better, together.

Once aims are established, functional areas within a business then devise department-based
strategies to ensure goals are achieved. The vision drives the business and the values are
embedded throughout the strategic planning process.

Whilst a vision outlines the aspirations of senior managers, a mission statement is a general
expression of the overall purpose of the business. It communicates the goals of a company to all
stakeholders. The vision should inspire all stakeholders and motivate employees towards
achieving its stated objectives. If well prepared, it should convince customers, suppliers and
external stakeholders of its sincerity and commitment to them.
Tescos management recognise the key role that its mission, vision and strategies play in its
success and use a range of key performance indicators (KPIs) to monitor and evaluate its
performance. These are explored in detail later in the case.

Chapter 1

Organizational values and business ethics

Tescos core values include a commitment to using its scale for good by being a responsible
retailer. In 2010, it opened the world's first zero-carbon supermarket in Ramsey, Cambridgeshire
and was awarded Green Retailer of the Year at the Annual Grocer Gold Awards 2012. Tesco
aims to be a zero-carbon business by 2050.

Tescos continuing success depends on it reassessing and formulating clear business strategies.
Tesco aims to improve customer loyalty and its core UK business in order to help it develop the
shopping experience for its customers. It committed 1 billion to an investment programme to
achieve this. Strategies to improve competitiveness were then developed. The driving forces
behind these strategies are price, quality, range and innovation as well as delivering great
multichannel customer service, for example, through its Click & Collect service.

Chapter 2

Management environment and organizational culture

1.3 Factors that influence the Individual behaviour

Individual behavior at Irish Tesco is affected by factors existing within him/her such as
personality, attitudes and perception. Following are the five different personality traits which are
usually known as the big 5 traits that affect the individual behaviour at Irish Tesco.

Agreeableness

Extraversion

Conscientiousness
Openness

Neuroticism

Traits ultimately affect behavior of an individual. Extrovert person will be involved in more open
communication and will develop a good rapport with other employees. If a member has the trait
of conscientiousness, he/she will be working more independently and will take ownership of
work rather than relying on members. An emotionally instable person would be having frequent
conflicts with its co-members; he would be less punctual or have poor attendance. Highly
conscientious people set higher goals and are more committed to work than others. Attitude is
another factor that affects the individual behaviour of a person. A person who feels negatively
about Tesco would portray negative behavior in form of high absenteeism, low participation, and
aggression towards other colleagues.

.2 Organizational theory and practice management at Irish Tesco

Organizational theory and management theory is used in many aspects of a working business.
Many people strive to adhere to the theory to help them become better at their jobs or more
successful in life, although this may lead to them having to sacrifice some of their personal
principles in order to succeed.

One example of following organizational theory in the financial sector would be an employee or
manager who wants to know how to achieve goals by having a set structure to follow. In
addition, someone in a Human Resources sector will have to make decisions throughout their
working day that will undoubtedly change the structure and practice of a working day for all
other employees in the company.

If an individual gets so wrapped up in trying to fit the mould of what they interpret their role
should be in terms of organizational theory, they may start to neglect other areas of business.
In the same way, management theory may also underpin the personal values of some individuals.
For instance, they may disagree with a particular rule or regulation that has been introduced by
the company, however in order to carry out their job as a manager effectively and professionally,
they need to move away from their principles and execute the job.

It is difficult to try to execute both management and organizational theories as a psychological

contract between the employer and employee still needs to be maintained. This will need to
consider how fairly the company is treating the employee and how 'fairly' the employee is
treating the company, i.e. Are they actually putting 100 percent effort into their work? Any
changes to the organization or management in a company, is undoubtedly going to have an effect
on all of this.

Chapter 3 Decision making styles and contemporary issues indecision making

Chapter 4 Planning strategies and process

Chapter 5 Organizational Structure and organizational design

Figure 1 Tesco Corporate Governance Structure

Tesco organizational structure is highly hierarchical reflecting the large size of the
business. Even in store level, there are as many as four layers of management in
some large stores. The Figure 2 below illustrates a typical organizational structure
within Metro, Superstore and Extra formats. It is important to note that the
structure below is not rigid for all Tesco stores and some stores operate with a
slightly different structure reflecting their location, size and a range of other store-
specific factors.

Figure 2 Tesco organizational structure at store level

It can be argued that three or four management layers within a single store may
create unnecessary bureaucracy with a negative implications on the flow of
information across the management layers. Therefore, the senior level
management needs to consider delayering opportunities i.e. increasing the
flexibility of operations and changes within store and accelerating the flow of
information via reducing the layers of management.
An organisations structure can depend on its size, the sector it operates in public, private, or third
sector i.e. voluntary or charitable, the number of people it employs and its physical resources.
Following are three different types of organizational structures

Functional organisational structure

Functional organisations are organised according to technological disciplines. Senior functional

managers are responsible for allocation of resources but the responsibility for the total product is
not allocated to one person but rather to a senior management group. Coordination occurs
through agreed organisational procedures, detailed specifications and regular meetings both ad
hoc and structured. Generally products that require a high level of specialist knowledge require a
functional structure.

Divisional organisational structure

Divisional organisations are commonly divided into smaller units of operation with each division
being aligned to a sales or production unit with supporting sales, production, finance, HR, and
marketing resources operating under a departmental manager but responsible to the unit manager
and then upwards.

1.2 Organizational structure and culture at Tesco

Following are some of the features of organisational structure at Tesco

Geographically based

Shared friendly culture

Employee empowerment is high

Decentralized structure

Decentralized decision making

Flexible work environment

Shared values and beliefs

1.3 Impact on Performance in Tesco

Flexible environment helps in increasing adaptability to change

Shared culture and beliefs, increase employee loyalty towards the organization and hence, his
performance

Bureaucratic structures and cultures have been replaced with a decentralized structure if
employee participation and flexibility has to be increased

A rigid, inflexible culture hinders growth as an individual and thus, creates employee resistance
towards work

By having a shared culture, employees are better able to understand customers

A wider span of control, reduces the chain of commands and improves employer-employee
relations

Inter-departmental coordination is improved in a decentralized structure

4. DISCUSSION AND CONCLUSION

5. RECOMMENDATIONS
Task 2

2.1 Different Leadership styles

Since, Tesco's employees are closely linked to customers, their need to be satisfied first,
therefore, a relationship-oriented style at the company will be required to keep the employees
committed to the organization. Acer, Inc. has been promoting innovation, so it needs to have
achievement-oriented style in order to make employees focus on creativity in order to achieve
growth. An organization that is focused on producing more and more rather than managing
people, a task-oriented style would be preferable. Usually, organizations with flexible cultures
have a support, participative and relationship-oriented style. In periods of change, a
transformational or charismatic leader would be needed who can create a vision that portrays the
necessity to change.

2.3 Different approaches to management

Human Relations approach

This is a management approach in which organization aims at managing people. This approach
emphasizes on greater productivity through motivation and good human relations. Group
dynamics, motivation, participation, effective leadership are considered very important in human
relations approach of management.

Social Systems approach

In this approach, management understands behavior of groups & individuals, cooperation is

necessary and efforts are directed towards achievement of goals.

Systems approach

In this approach it is assumed that systems are man-made. Internal and external environment is
considered at most in systems approach and efforts are done to achieve established goals.

Contingency approach
In contingency approach, action is contingent on certain action outside system. Action is based
on behavior outside so organization needs to integrate with the environment and it is implied that
no action can be universal, it varies from situation to situation.

Task 3

3.1 Different Leadership styles

The two different styles required in different situations are as follows:

Situation 1: Unclear job duties and responsibilities

When job duties and responsibilities are unclear, in case of a new change made in the
organization, manager needs to adopt a directive leadership style, which is basically the style of a
transactional leader. Such leadership style will help in clarifying roles of employees in the
organization and make their job descriptions more clearly by structuring the tasks required.
Structuring will help individuals understand what is expected of them in the job they have been
assigned and how they need to go about it (Nelson and Quick 2007).

Situation 2: Implementation of new strategy to achieve growth

Usually when organizations are under-performing or plan to compete on a more strategic level,
they implement new strategies that need to be adopted by the whole organization in order to
make it successful. In such a situation, an achievement-oriented or charismatic leadership style is
required by the manager in order to make the vision of the organization clearer and to assign
challenging tasks to the employees in order to boost their performance that can help in achieving
growth company (Daft and Samson 2003). Irish Tesco always had intense competition with
Pepsi, so implementation of new strategies to benchmark Pepsi along with proper leadership
style can help in improving performance.

3.2 Application of different motivation theories within the workplace

Various motivational theories exit that assess the impact of different motivational variables on
employee performance:

Vroom's Expectancy theory

According to this theory, the motivation of employee depends on his/her expectancy about being
able to do a certain task and achieve the outcome desired. Availability of resources is of concern
in order for the employee to perform the task. If the company does not have the adequate
resources available then performance will be affected in achieving the desired outcome. Also,
goals should be assigned that are challenging as well as doable. If an employee knows that he
cannot achieve the goal because of the time constraint or non-availability of resources, he would
not be motivated to make an effort on it (Daft and Samson, 2003).

3.3 Usefulness of a motivation theory for managers

By understanding the motivation theories, managers will be able to adopt styles and strategies
that will help in increasing employee motivation. They also help in deciding when to have a
monetary reward system and when to use non-monetary rewards such as appreciation letters. For
instance, word of mouth appraisals can be more frequently used. Also, managers will plan
resources accordingly to ensure that employees have the necessary resources required to
motivate him/her to perform a certain task. Along with that, managers will be able to better
design performance-based reward systems on the basis of expectancy theory, if low performance
has been due to low expectation of a reward. Maslow's needs theories is more of use to
individuals and less to the manager, because it is difficult to understand emotional need of an
employee or whether he/she is facing lack of self-esteem or belongingness. Managers can also
integrate various theories and make use of them in assigning tasks, evaluating it and making
performance appraisals. It will help the manager have a more fair-based compensation in the
organization and in deciding on tasks assigned to employees at different hierarchical levels. It
will also help in avoiding any discriminatory practices or biases that promotes inequity in the
organization (Jex and Britt, 2008).

Task 4

4.1 Nature of groups and group behavior within organizations

A group is formed when two or more individuals interact with each other in order to achieve a
particular objective. They can be formal or informal in nature.

Formal groups are those that are defined by the organization structure and are assigned to
achieve particular tasks. For instance, the sales department at Irish Tesco will be operating within
the larger system of organization. (Daniel and Gitman, 2008)

Informal groups, on the other hand, are not properly structured or determined by the
organization. These groups are formed as a result of social interaction occurring within the
organization such as a friendship group or an interest group. For example, a group of employees
who have lunch or coffee together, even though the group is informal, it is a significant impact
on behaviour and performance of employees (Griffin and Moorhead, 2011).

The group behaviour also largely depends on the stage of group development. A five stage model
of group characterizes group according to the following stages (Robbins, 2010):

Forming: The group members do not know each other really well and there is uncertainty as to
how to carry out the group work.
Storming: Intra-group conflicts exist at this stage where everyone tries to dominate their ideas
over others and it continues unless a conclusion is reached regarding who will lead the group and
how the tasks will be organized.

Norming: At this stage, the members have developed a mutual understanding and are defining
group norms.

Performing: Once the norms are set, the group starts performing to achieve the purpose for which
it was formed.

Adjourning: After performance, the group adjourns if it was made for a temporary time period,
for instance, for a particular project. In other cases, where groups keep on performing on
continuous basis, this stage is not relevant to those groups.

4.2 Factors that may promote or inhibit the development of effective teamwork in
organizations

Teamwork effectiveness criteria are based on team viability and performance and are largely
affected by factors that may occur within the teams as well as external factors (Kreitner and
Kinicki, 2008).

Factors that may promote teamwork effectiveness are (Kreitner and Kinicki, 2008):

Shared leadership: When leadership is shared, it means that there is a formal leader, but the
leadership functions are shifting from time to time. Every member of the team is willing to take
ownership and participates in active decision making, which helps in abiding team norms and
achieving desired output effectively.
Clear purpose: It is very necessary to have a clear purpose because when team members know
the vision, mission and goals of their team; their roles become clearer and they have a focused
approach towards achieving the targeted goal.

Open communication: It helps in avoiding hidden conflicts since members are able to freely
express their views.

Factors that may inhibit teamwork effectiveness and make the team dysfunctional are (Kreitner
and Kinicki, 2008):

Groupthink: It occurs when group cohesiveness is too high within the team and members make
decisions that can help in keeping the group intact at the expense of team goals.

Social loafing: Social loafing greatly inhibits effectiveness since the team member is withholding
his efforts and not performing his share of work.

Unclear roles: When members do not know what is exactly expected of them, then they tend to
become de-motivated towards performing well. Roles should not be ambiguous and each
member should be given his share of work in order to improve team effectiveness.

4.3 Impact of technology on team functioning within an organization

Technology has helped in the creation of virtual teams within Irish Tesco that might have its
operations nationally located. The team members can communicate with each other through
emails, instant messaging, videoconferencing, groupware, etc. For instance, the sales team of
Tesco can be physically dispersed in different cities and can plan on promotion strategies to meet
global competition. Likewise, cross-cultural teams are also formed, which may help in
promoting diversity and expanding operations of the organization across the globe. Because of
technology, communication has become fast and travelling costs have been reduced, since teams
do not necessarily have to meet frequently when they can communicate through virtual networks
(Duarte and Snyder, 2006).

Reference

http://businesscasestudies.co.uk/tesco/vision-values-and-business-
strategies/introduction.html